The Dubai Land Department (“DLD”) has formally agreed with the Abu Dhabi Global Market (“ADGM”) Registration Authority to allow ADGM Foundations, ADGM family businesses, ADGM Trusts and REIT's established in the ADGM, to own real estate in Dubai.
What does this mean?
Based on this agreement, ADGM Foundations, ADGM family businesses, ADGM Trusts and REIT's established in the ADGM, will now be subject to the conditions and procedures agreed upon in the original Memorandum of Understanding (“MoU”)of 2018 for the registration of Dubai-based real estate properties in their name.
Furthermore, such ownership by these ADGM entities is subject to the foreign ownership restrictions applicable in the Emirate of Dubai and in accordance with the procedures applied by the DLD; (as previously agreed upon in the MoU signed with the DLD). Accordingly, entities that are owned by either a UAE or GCC national can own real estate properties in any location in Dubai and those, which are owned by non-UAE and non-GCC nationals, may only own real estate properties in the freehold zones within the Emirate of Dubai.
The ownership of Dubai-based real estate properties is subject to the following conditions:
- ADGM Foundations, ADGM family businesses, ADGM Trusts and REIT's established in the ADGM should be duly licensed by, and registered in, the ADGM;
- Disclosure should be made by the relevant entity of its beneficial owners; and
- In the case of ownership of real estate properties outside the Dubai freehold zones, a written undertaking should be submitted by the relevant entity to restrict ownership of the entity's shares to UAE and GCC nationals.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.